New Australian Crypto Regulations: What Investors Need to Know

On March 21, the Australian Treasury unveiled its long-awaited update on the future of digital asset regulation. The statement provides much-needed direction but also shifts the timeline for the rollout of these changes. You can read the full document here.

What was originally expected to be released in late 2024 or early 2025 has now been pushed to late 2025—potentially even later, depending on the outcome of public consultation. As a result, full compliance may not be required until 2026 or beyond.

While this extended timeline might feel like a wait, it’s a positive shift. It means the government is taking the time to create a thoughtful, secure framework that will help foster a more stable, long-term market for digital assets.

Here’s a breakdown of what you should know.

What’s Changing?

The new regulations will focus on three key areas:

• Digital Asset Platforms (DAPs): These include crypto exchanges, wealth platforms, and any service that holds digital assets on behalf of users.

• Asset Token Issuers: Companies that issue tokens backed by real-world assets, like gold-backed digital tokens.

• Advisory Services: Anyone providing advice on using DAPs will also be regulated.

What Will Be Required?

• An Australian Financial Services License (AFSL): Every DAP will need one, with specific conditions based on whether they offer custody, trading, or advice.

• Institutional-Grade Security: Higher standards for capital reserves, client money protection, and transparency—bringing crypto closer to traditional finance.

• Stronger Custody Rules: Tougher custodial protections, ensuring digital assets are safeguarded like traditional investments.

Why This Matters

These regulations will redefine Australia’s crypto industry. Many smaller firms may struggle to comply, but the changes could also bring big benefits:

• More Institutional Investment: Clearer rules could encourage major players to enter the market.

• A More Specialised Industry: Firms will likely focus on specific areas—custody, retail trading, or institutional services—rather than trying to do it all.

• Better Banking Access: Tighter regulations might encourage banks to work with licensed crypto platforms, solving one of the industry's biggest hurdles.

Where Does Wealth99 Stand?

At Wealth99, we’ve been preparing for this shift for years. Here’s how we’re staying ahead of the curve:

• Partnered with Zodia for licensed custody, ensuring assets are protected by a bank-owned provider.

• Blocked crypto withdrawals to prevent scams and enhance security.

• Backed our precious metals tokens 100% with physical assets, held in secure vaults with full audit transparency.

The Bottom Line

Regulation is coming—and that’s a good thing. While some firms may struggle, others are ready to thrive. These changes will help shape a more secure, mature, and investment-ready crypto industry in Australia.